Method and system for conducting transactions using a payment card with two technologies

Abstract

A system for conducting financial transactions is provided wherein payment cards have stored account information including a first portion readable by a first machine-readable technology and a second portion readable by a second different machine-readable technology. Terminals employing both of said first and second technologies are used to capture said card account information for conducting each such transaction.

1. A method for conducting a financial transaction over a communications network comprising a terminal, a payment network including a transaction authorization issuer, and a payment card having a chip, comprising:
 storing on said card account information having a first portion readable by a first machine-readable technology and a second portion readable by a second different machine-readable technology, said stored account information including a payment account number, an expiration date, a service code, and wherein said chip maintains a transaction counter, and receives a terminal challenge number from the terminal;  
 securely storing on said chip a unique per-card cryptographic key;  
 supporting on said chip a cryptographic algorithm for calculating an authentication code using at least said key, said authentication code to be used for verification by said transaction authorization issuer; wherein said authentication code is calculated using at least portions of said unique per-card cryptographic key, said account number, said expiration date, said service code, a value associated with said counter, and said challenge number, and  
 employing both of said first and second technologies to capture said card account information for conducting said financial transaction.  
 
   
   
     2. The method of  claim 1 , wherein said stored account information includes Track  2  data comprising said expiration date, said service code, and discretionary data, and wherein said chip is an RF chip which stores said Track  2  data. 
   
   
     3. The method of  claim 2 , further comprising:
 reformatting the discretionary data of said Track  2  data with said authentication code, said transaction counter, and said terminal challenge number; and  
 making said reformatted data available for reading by said terminal.